Court Denies Motion for Leave to Appeal in ‘My Big Coin Pay’ Case

The US district court of Massachusetts denied an application filed by owners of My Big Coin Pay, the corporate parent of the ‎cryptocurrency payment platform and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term wallet, ‎MyBigCoin.com.

‎The defendants were seeking leave to appeal the court order in September 2018 which denied their motion to dismiss the lawsuit against the creators of the alleged cryptocurrency scam.

Founded in December 2013, My Big Coin is a virtual currency wallet and platform ‎that allegedly allows merchants and consumers to process transactions with its own digital tokens.‎

The founder and principal operator of the Nevada-based company, Randall Crater, was arrested in Florida after being charged with running an elaborate cryptocurrency scam that defrauded at least 28 investors out of six millions of dollars. The enforcement action described My Big Coin as a classic Ponzi scam.

Crater was one of three separate cryptocurrency operators the CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term charged with fraud and misappropriation, alleging that they ‎had broken other commodity trading rules. The suspects were charged as part of an extensive investigation into different cryptocurrency investment schemes.

My Big Coin Challenges CFTC’s Authority

In a criminal complaint filed in Massachusetts district court, the ‎CFTC describes how My Big Coin sold digital tokens, known as ‘MBC’, as ‎part of a purported ICO that allows investors to enjoy a lavish lifestyle, ‎including travel, entertainment, jewelry purchases and much more across ‎the world.

The agency alleged that the MBC website made false statements to ‎prospective investors, as well as misrepresenting that ‎the token was backed by gold, partnered ‎with MasterCard,‎ when in fact it was only backed by promotional prose.‎

Furthermore, the fraudsters represented the MBC token to investors as being used to “to purchase a home, antiques, fine art, jewelry, luxury goods, furniture, interior decorating and other home improvement services, travel, and entertainment.”

However, the CFTC’s authority has been challenged by the defendants as My Big Coin lawyers said the enforcement action had it all wrong and the watchdog does not have jurisdiction because the token is not a commodity.

The case could not move forward until the CFTC’s jurisdiction has been established and a federal court ruled that it had the standing to bring a fraud lawsuit against My Big Coin Pay.